Competitiveness and Policy Reforms can boost Indian Manufacturing

Mumbai, November 8, 2019: Jamshyd N Godrej, CII Manufacturing Summit Chairman & Past President, CII and Chairman & MD, Godrej & Boyce Mfg. Co. Ltd. said that the success of the Hon’ble Prime Minister’s vision of a USD 5 trillion economy would depend on suitable policy interventions focussing on small, medium and large enterprises and also skilling. CII organised the 17th edition of CII Manufacturing Summit in Mumbai. The theme of the session was ‘Promoting Competitiveness to Win Global Markets’.

He added that the EoDB should be seen and felt by industry stakeholders and investors. The corporate tax cut would need to be accompanied by policy reforms to boost FDI in manufacturing said Mr Godrej.

Mr Godrej mentioned that India has lost on account of the various Free Trade Agreements that it signed over the years, while the corresponding country has gained more. Only competitiveness can change this situation and help India achieve greater integration into global value chains said Mr Godrej. He said that if India wanted to witness a significant growth in manufacturing, it must focus on exports. Mr Godrej said that in addition to aiming to attract foreign investments into India, we must ensure that both Indian manufacturing and FDI in India look at external sector in a  more vibrant manner.

Mr Sunil Mathur, Dy Chairman, CII Western Region and Managing Director, Siemens India said that today the words manufacturing and smart manufacturing have become synonymous. Companies across the world are moving into smart manufacturing with an efficiency level of 99.99%, while India still stands at 70%. India cannot move forward to match global standards unless it uses the latest technology and an integrated supply chain that also drives 99.99% efficiency. He added that the country must take care of the regulatory and infrastructural requirements of not just the large industries but also SMEs to drive competitiveness.

Mr Mathur said that Industry 4.0 is not about adding capex or spending huge money but it is about saving money and using money in a more efficient manner. Initiatives being undertaken by CII Smart Manufacturing Council to boost manufacturing include Awareness Workshops (in association with Department of Heavy Industries), CII Case Studies Portal, CII Smart Manufacturing Summit, CII Smart Manufacturing Index and CII Missions on Smart Manufacturing.

Dr Janmejaya Sinha, Chairman, Boston Consulting Group India said that if India is talking about Industry 4.0, it must adopt a honest approach towards where it actually stands. Expressing concern about companies leaving China but choosing Vietnam and Bangladesh over India, he cited the high cost of Land, Labour, Capital and Compliances as key impediments. He said that it was not just the EoDB but the high risk of doing business in India that is proving to be a deterrent. He suggested that India must think creatively on how to make the most of its resources in the existing situation and also do a comparative study on its costs via a vis competing nations so that it can adopt necessary measures to become the factory to the World.